Moncler Banking on Mainland China, Internalizing Online Business

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The lack of tourist flows impacted Italy, which in the nine months reported a 34 percent drop in revenues to 86.2 million euros.

MILAN — The impact of the coronavirus pandemic dented Moncler SpA’s revenues in the first nine months of the year, but the company started to see improvements in the third quarter and is banking on the recovery of Mainland China and new projects that have growth potential, such as the internalization of its online business in North America.

“We ended the third quarter of 2020 with better results than we expected,” said chairman and chief executive officer Remo Ruffini. “Not only is the Chinese market seeing high and constantly improving growth rates, but other markets and all distribution channels are also showing continuous progress in their performance, although in many cases they are still negative.

Luciano Santel, chief corporate and supply officer, also emphasized during a call with analysts the importance of a “very positive” China market, and the boost seen during Golden Week. “In the last nine months we have experienced unexpected events — difficult, to be sure, but also highly formative,” continued Ruffini. “I think it is our duty now to take what we have learnt and turn it into something valuable for the future. Being flexible and responsive, while maintaining an efficient cost structure, are still fundamental to a successful company. These qualities have always been part of Moncler’s DNA and now I have solid proof that they have been strengthened even further.

Japan will follow in June 2021 and, China will be up next by the end of the second half of next year. “It’s a completely different project and it’s a huge opportunity,” admitted Santel. “We have started moving the machine and have already worked with TikTok and opened WeChat mini programs.” In the nine months, sales of the retail distribution channel were down 27 percent to 502.7 million euros, compared with 690.4 million euros in the same period last year. In the third quarter, retail revenues were down 20 percent with a constant and progressive improvement compared to first-half results.The wholesale channel posted a 14 percent decrease to 262.4 million euros. In the third quarter, wholesale revenues decreased by 7 percent.

 

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